In recent days, Ethereum (ETH) has faced declining prices and a loss of key support at $1,800. The situation in the market raises concerns, and investors wonder: could ETH fall below $1,000?
Ethereum Crashes Below $1,800 – Weakening Positions
The recent breakdown below $1,800 has caused panic in the cryptocurrency community. Analyst Andrew Kang referred to Ethereum as "overvalued," arguing that its market cap of $215 billion is too high for an asset with "negative growth." Following his comments, Ethereum's market cap dropped to $191 billion, validating his bearish outlook for a more realistic range of $1,000 to $1,500.
Macro Factors at Play
The macroeconomic environment is also not helping investor confidence. Global trade tensions and fears of an economic slowdown keep caution prevailing in the market. Even the prospect of a U.S. interest rate cut does not generate the usual optimism. This limits appetite for risk assets like Ethereum.
Potential for Ethereum Recovery
Nevertheless, despite weak price action, Ethereum's fundamentals are showing surprising strength. The total value locked (TVL) in Ethereum reached a record of 29.5 million ETH, indicating continued developer activity and user interest. Additionally, unfilled CME futures gaps suggest potential for a strong recovery later in the year. However, many traders are staying cautious and avoiding new long positions.
In the short term, Ethereum is facing high risks, and the possibility of falling below $1,000 remains. However, potential recovery opportunities in the long term remain open if the market starts to show signs of recovery.
